CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - NYSE:CARR - US14448C1045 - Common Stock
58.29 USD
+0.45 (+0.78%)
58.5 USD
+0.21 (+0.36%)
CARR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. There are concerns on the financial health of CARR while its profitability can be described as average. CARR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
CARR had a positive operating cash flow in the past year.
In the past 5 years CARR has always been profitable.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CARR (10.39%) is better than 70.73% of its industry peers.
With an excellent Return On Equity value of 27.21%, CARR belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
CARR has a Return On Invested Capital of 5.51%. This is in the lower half of the industry: CARR underperforms 73.17% of its industry peers.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is below the industry average of 12.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 27.21% | ||
| ROIC | 5.51% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
CARR has a Profit Margin of 17.81%. This is amongst the best in the industry. CARR outperforms 92.68% of its industry peers.
CARR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 11.83%, CARR perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
CARR's Operating Margin has declined in the last couple of years.
CARR has a worse Gross Margin (27.89%) than 60.98% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.83% | ||
| PM (TTM) | 17.81% | ||
| GM | 27.89% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
CARR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CARR has an improved debt to assets ratio.
2.2 Solvency
CARR has an Altman-Z score of 2.55. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CARR (2.55) is worse than 73.17% of its industry peers.
CARR has a debt to FCF ratio of 12.70. This is a negative value and a sign of low solvency as CARR would need 12.70 years to pay back of all of its debts.
CARR has a worse Debt to FCF ratio (12.70) than 68.29% of its industry peers.
CARR has a Debt/Equity ratio of 0.77. This is a neutral value indicating CARR is somewhat dependend on debt financing.
CARR has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: CARR underperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.61
WACC8.99%
2.3 Liquidity
CARR has a Current Ratio of 1.17. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
CARR has a worse Current ratio (1.17) than 80.49% of its industry peers.
CARR has a Quick Ratio of 1.17. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR's Quick ratio of 0.80 is on the low side compared to the rest of the industry. CARR is outperformed by 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
CARR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.27% yearly.
CARR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.82%.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-1.03%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%5.75%
Revenue 1Y (TTM)-20.82%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-8.61%
3.2 Future
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-0.92%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
EPS Next 5Y11.59%
Revenue Next Year-2.7%
Revenue Next 2Y1.38%
Revenue Next 3Y2.76%
Revenue Next 5Y5%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.24 indicates a rather expensive valuation of CARR.
CARR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CARR is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.02, which indicates a rather expensive current valuation of CARR.
The rest of the industry has a similar Price/Forward Earnings ratio as CARR.
When comparing the Price/Forward Earnings ratio of CARR to the average of the S&P500 Index (23.09), we can say CARR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.02 |
4.2 Price Multiples
CARR's Enterprise Value to EBITDA ratio is in line with the industry average.
CARR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CARR is more expensive than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.06 | ||
| EV/EBITDA | 15.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y7.48%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.24. CARR pays more dividend than 85.37% of the companies in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.25% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.25%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
58.29
+0.45 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change0.04%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap49.61B
Revenue(TTM)22.46B
Net Income(TTM)4.00B
Analysts78.13
Price Target79.89 (37.06%)
Short Float %1.62%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.39%
Min EPS beat(2)-0.24%
Max EPS beat(2)9.02%
EPS beat(4)2
Avg EPS beat(4)1.64%
Min EPS beat(4)-8.31%
Max EPS beat(4)9.02%
EPS beat(8)6
Avg EPS beat(8)4.87%
EPS beat(12)9
Avg EPS beat(12)4.08%
EPS beat(16)13
Avg EPS beat(16)5.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4.35%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)4
Avg Revenue beat(16)-2.08%
PT rev (1m)-2.43%
PT rev (3m)-5.81%
EPS NQ rev (1m)-26.43%
EPS NQ rev (3m)-37.82%
EPS NY rev (1m)-5.86%
EPS NY rev (3m)-10.66%
Revenue NQ rev (1m)-5.47%
Revenue NQ rev (3m)-10.15%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.02 | ||
| P/S | 2.21 | ||
| P/FCF | 55.06 | ||
| P/OCF | 36.77 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.26 |
EPS(TTM)2.88
EY4.94%
EPS(NY)3.23
Fwd EY5.55%
FCF(TTM)1.06
FCFY1.82%
OCF(TTM)1.59
OCFY2.72%
SpS26.4
BVpS17.28
TBVpS-9.09
PEG (NY)N/A
PEG (5Y)1
Graham Number33.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 27.21% | ||
| ROCE | 8.66% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 26.31% | ||
| OM | 11.83% | ||
| PM (TTM) | 17.81% | ||
| GM | 27.89% | ||
| FCFM | 4.01% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 36.51% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.73% | ||
| Profit Quality | 22.52% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.55 |
F-Score5
WACC8.99%
ROIC/WACC0.61
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.03%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%5.75%
EPS Next Y-0.92%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-20.82%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-8.61%
Revenue Next Year-2.7%
Revenue Next 2Y1.38%
Revenue Next 3Y2.76%
Revenue Next 5Y5%
EBIT growth 1Y7.88%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-55.88%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-44.19%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 3 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 2 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 20.24 and the Price/Book (PB) ratio is 3.37.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -0.92% in the next year.